CORE COMPETENCY

Submitted by- Amit chowdhury (2009MB20)

Rakesh Gupta(2009MB05)
 CONTENT
 Definition
 Importance
 Descriptors
 Strategy
 Work of hamel and prahalad.
 Core Competency model.
 Identifying core competency.
 Company Examples.
 Conclusion
WHAT IS CORE COMPETENCY???
 Core competencies are specific skill sets
that brings a competitive advantage to
business operating in a economic market.

 Core Competency is a fundamental

knowledge, ability, or expertise in a specific
subjects, area or skill set.
WHY ARE CORE COMPETENCIES
IMPORTANT?
 It makes difference from it’s competitors.

 They(Skill sets) are what make the

organization unique.

 They are sources of competitive advantage.

 They are the building blocks to future

opportunities and earned income ventures.
CORE COMPETENCY DESCRIPTORS
 COMMUNICATION
 Level 1: Able to exchange basic information in a
courteous and effective manner to peers, line
managers and customers.

  Level 2: Able to exchange detailed and more complex

information to a broader range of staff.

 Level 3: Able to effectively transfer key & complex

information to all levels of staff and ensuring that this
information is understood. Excellent and accurate
standard of written and verbal communication.
 
 ADAPTABILITY/FLEXIBILITY
 Level 1: Reliable and flexible in response to work
priorities and issues.

  Level 2: Receptive or contributes to new ideas and

approaches and adapts accordingly. Ability to
handle conflicting priorities and deal with unusual
incidents.

 Level 3: Generation of new ideas and suggestions for

change. Ability to flex approach to difficult needs of
several concurrent work streams. Remains resilient
whilst working under adverse or conflicting demands.
 CUSTOMER/CLIENT SERVICE AND SUPPORT
 Level 1 :Receives customer/client feedback and
responds positively, reviewing own performance.

 Level 2: Understands customer/client needs and

provides customer/clients satisfaction;give timely
advice.

 Level 3: Actively seeks customer/client feedback.

Gives advice, continuously review and improve
performance standards of self and team.
 CREATIVE AND ANALYTICAL
THINKING
 Level 1: Understands core issues and proactively
suggests new ideas or processes with the aim of
adding value.

 Level 2: Combines fairly complex ideas or processes

or rapidly evolving ideas and situations. Adapts others
ideas and makes them relevant to the organization.

 Level 3: Combines complex ideas and situations with

many stands or layers. Identifies key components of
ambiguous and interwoven problems. Thinks creatively
to produce brand, new workable ideas and novel
solutions. Good quality of innovative contribution.
 PLANNING AND ORGANISING

 Level 1: Provides work on time with required

standard. Planning a wide range of simple tasks, or a
small number of complex ones.

 Level 2: Workload delivered within deadlines and to

agreed standards. Making medium plans for a whole
specialist function or project.

 Level 3: Completion of work within area for which

responsible within deadlines and to agreed
standards. Making effective long term plans for
project/function.
 TEAMWORK
 Level 1: Work effectively as part of a team,
supportive to all stuff.

 Level 2: Effective delegation, performance

monitoring and motivation of the team; Seeks ideas
and input of colleagues to become expert; Team
performance.

 Level 3: Ensures team is appropriately skilled,

managed and resourced; Discuss problems / issues ,
expectations with team members effectively; Gives
credit and acknowledges contributions and efforts of
individuals to team effectiveness.
 CONTINUOUS IMPROVEMENT
 Level 1: Makes suggestions for improvements to
current working methods. Shows a willingness to learn.

 Level 2: Improve efficiency and quality of service of

own area via input to procedures and processes. Keeps
own skills up-to-date and develops a depth or breadth
of knowledge in a particular area through learning.

 Level 3: Revise or develop procedure and policy and

contributes to their successful implementation. Keeps
up-to-date with developments in own field and keeps
abreast of issues internally and externally ; Continuous
learning.
 PROBLEM SOLVING AND
DECISION MAKING
 Level 1: Ability to interpret basic rules and
guidelines and know when something needs to be
referred to supervisor/higher level.

 Level 2: Understands and is aware of the range of

options available in new or unfamiliar situations and
select the appropriate course of action to produce a
logical, practical and acceptable solution.

 Level 3: Ability to analyse situations and to make

more complex decisions, where problem solving is
not straight forward.
 LEADERSHIP/MANAGEMENT
 Level 1: Ability to organise own and others activities. Provides
professional management of a team with a well defined staff
group which deals mainly with issues which occur regularly.

 Level 2: Ability to motivate and lead team to ensure effective

performance against goals. Provides effective leadership and
values to the team, passing on own skills and knowledge
where possible. Leading and planning the work of the team
which deals with more diverse issues.

 Level 3: Effective development, management and motivation

of staff within area. Securing and directing resources for a wide
area with diverse staff with clear risks attached to decisions.
 
 STRATEGIC THINKING
 Level 1: Generates ideas which contribute to
the Department or Functional strategy.

 Level 2: Identifies best practice and applies to

area. Analyses ideas and develops ideas for the
strategy of the Department or functional area.

 Level 3: Excellent quality of planning and links

to strategy. Proposals for policy which meet
both internal and external requirements.
Develops Department or functional strategy
more effectively.
STRATEGY : CORE
COMPETENCY
 Core competencies are those capabilities
that are critical to a business achieving
competitive advantage.
 Senior management cannot focus on all
activities of a business and the competencies
required to undertake them.
 So the goal is for management to focus
attention on competencies that really affect
competitive advantage.
THE WORK OF HAMEL AND
PRAHALAD

 The main ideas about Core Competencies

where developed by C K Prahalad and G
Hamel through a series of articles in the
Harvard Business Review followed by a best-
selling book -Competing for the Future .

 Core competencies are not fixed.

 'In the 1990s managers
will be judged on
their ability to
identify, cultivate,
and exploit the core
competencies that
make growth possible
- indeed, they'll have
to rethink the concept
of the corporation it
self.' C K Prahalad and
G Hamel 1990
CORE COMPETENCY MODEL
 The core competencies model of hamel and
prahalad is an inside-out corporate strategy.
IDENTIFYING CORE
COMPETENCIES
 Prahalad and hamel suggest three factors to
help identify core competencies in any
buisness:
 Provides potential access to a wide variety
of markets.
 Makes a significant contribution to the
perceived customer benefits of the end
product.
 Difficult for competitors to imitate.
COMPANY EXAMPLES

  Honda has a core competence in small

engine design and manufacturing.
 Microsoft has the core competence of
designing office software products that are
user-friendly.
 PepsiCo has a core competence of mass
production and distribution of bottled drinks.
EXAMPLES CONTD..
 Nokia, which traditionally manufactured
rubber boots.
 Nokia has been able to open up new markets
by using their innovative technologies.

 Motorola divested itself of its semiconductor

DRAM buisness at 256kb level and then was
unable to enter the 1Mb market on its own.

.
CONCLUSION
It is important for any company to understand
the core competencies so as to get
competitive advantage over other company
in the present era of competitiveness that
will help the company to formulate their
strategies according to core competency .

“if you don’t have competitive advantage ,

don’t compete”
-jack welch
THANK YOU